New data shows mortgage applications from first-time buyers are back with a bang. We look more closely at the figures and the possible factors behind the increase. Plus, read on for a selection of new home developments we’ve chosen, where you can find homes that are ideal for first-time buyers.
First-time buyer mortgage applications have increased
Yes, the new analysis from the Yorkshire Building Society and business consultancy CACI shows that loan applications from first-time buyers have grown by 33% so far this year. And if you compare this to first-time buyer activity over the last eight years, it’s an increase of almost 25%.
Such is the spike in activity, first-time buyers make up nearly 40% of all mortgage applications. That’s the highest proportion of the home buying market since at least 2016. In fact, in January this year, mortgage applications from first-time buyers exceeded that for home movers for the first time.
What’s causing the change?
That’s a good question. Because let’s face it – there are still inflationary pressures; interest rates remain high, and there remains economic volatility too. And add to that the political uncertainty we’re experiencing in the country right now. So, it is surprising but welcoming news that first-time buyers are proving to be so active. There is a definitely a return to consumer confidence amongst this home buying category.
A case of now or never
There are a couple of reasons why first-time buyers may be determined to push on with their house buying plans. The first is the cost of private renting. With there being no end in sight to the astronomical rents up and down the country, first-time buyers would rather take on a high-interest mortgage than rent. The Office for National Statistics shows the average private rent for England was £1,276 in February 2024, up 8.8% (£104) from a year earlier. And this compares to an average monthly mortgage payment for a first-time buyer at around £1,139 (via data from The Yorkshire Building Society).
The steadfast determination from first-time buyers to get on the housing ladder is also mirrored in their life choices. Back in October 2023, the Yorkshire Building Society published its Home Truths report which looked at what a cross-section of property buyers and landlords think of the current mortgage and housing markets. The outcome revealed that first-time buyers feel homeownership is becoming an ‘elite privilege’. And in order to get themselves on the property ladder, they are delaying major life events such as getting married (25%) and starting a family (15%) to focus on saving for their first home.
New-build homes have first-time buyer appeal
Another concern raised by first-time buyers in the Yorkshire Building Society Home Truths report is the lack of suitable property currently available to them. Hence, we’ve done a round-up of some of the new home developments where smaller, more affordable properties can be found across the country.
There are many reasons why new-build homes remain appealing to first-time buyers. The fact new homes are built to the latest regulations means they are far more energy efficient, making energy costs more palatable. And with everything being brand new inside, new buyers don’t need to fork out extra for expensive renovation or redecoration costs. The blank canvas of the garden and home itself, appeals to first-time buyers, giving them the chance to make their new home their own quickly and easily. And there are deals to be had when buying new-build homes, from help with deposits to offers on flooring, even schemes such Own New Rate Reducer. We strongly recommend that first-time buyers discuss with housebuilders all the options open to them, to get the best deal on a new-build home.
New homes with houses suitable for first-time buyers
Our website is perfect for helping first-time buyers find suitable, affordable new homes to buy. Such as these…
Spring Mill in Whitworth Lancashire from Gleeson Homes
Buyers of the new homes at Spring Mill in Whitworth, Lancashire will find a multitude of deals available: 5% deposit contribution, extras, price reductions, plus Own New Rate Reducer to help secure lower mortgage rates. And the development is definitely one that first-time buyers should look at as it has an excellent selection of two-bedroom homes, all priced below £200,000. In fact, the development lists 119 new affordable homes for sale, making it the perfect place for first-time buyers to call home.
Seen here is The Mayfield, one of the two-bed semi-detached properties available at Spring Mill.
The location of the development is perfect too, ideal for commuting to Bury, Rochdale, even Manchester. It’s close to the picturesque Spring Mill Reservoir and has plenty of amenities on the doorstep.
Take a look at the Spring Mill development from Gleeson Homes here.
Firbeck Fields in Langold, Nottinghamshire from Gleeson Homes
As well as being affordable, there are opportunities to buy a home with Shared Ownership at Firbeck Fields, although these are limited. The development features 165 homes spanning two, three and four bedrooms, with a good selection of homes available for under £200,000. And there are other offers available too, including deposit contributions on selected plots. 
This is the modern Lisburn 3-bedroom property available at Firbeck Fields which features an open-plan kitchen-diner and a family bathroom finished with Porcelanosa tiling. Firbeck Fields offers the chance for rural living, nestled on the edge of the lovely village of Langold. There are plenty of amenities from shops to schools within a 5-minute walk, while the town of Worksop is only a ten-minute drive away.
Don’t miss the homes at Firbeck Fields from Gleeson Homes here.
Are you a first-time buyer and keen to buy an affordable new-build home? Use our handy search tool on our website to find your dream home. You can search by house price too, to better refine your results and find a property that meets your budget. We list new homes available from a range of housebuilders large and small across the country, bringing you the best selection. Get started here.
